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When is it time to file for bankruptcy?

If you are having a difficult time financially, you may already know that filing for Chapter 7 or Chapter 13 may be an option for you and other Eugene residents. However, you may wonder when you should stop attempting to make it on your own and file for bankruptcy.

According to NerdWallet, there are numerous factors that may signal it is time to consider bankruptcy. These may include the following:

You can only make the minimum payment on your credit cards and other forms of debt. Instead of paying down debt, you are barely keeping your head above water. You may regularly forgo some payments to pay more urgent bills, getting yourself even further into default.

You face losing your home, vehicles or other assets. Your wages are being garnished or creditors are threatening to garnish you or take you to court. You are being called on a weekly or daily basis by bill collectors, and you have been unable to negotiate a reasonable payment plan. You may be considering consolidating your bills in order to make them more manageable.

You do not know exactly how much you are in debt. You use your credit cards to pay your monthly bills because your income is not enough to make ends meet. You figure it would take at least five years to repay your debt, and that your current payments are doing little to pay down the interest.

Perhaps one of the most telling factors that you might be ready for bankruptcy is that you feel anxiety, hopelessness and a loss of control when you think about your financial situation. It is the intent of this post to give you general information, but it should not replace the advice of a lawyer.

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